Siemens, GE Sign Preliminary Agreements to Boost Iraq Power Network
October 22 2018 - 2:47AM
Dow Jones News
By Nathan Allen
Siemens AG (SIE.XE) and General Electric Co. (GE) have both
signed preliminary agreements with Iraq's Ministry of Electricity
to rebuild the country's damaged power infrastructure, according to
statements released over the weekend.
GE said Sunday it plans to add around 14 gigawatts of capacity
to the Iraqi grid, create up to 65,000 jobs and help the government
avoid recoverable losses of up to $3 billion a year.
The U.S. conglomerate said it will initially upgrade existing
sites to bring around 1.5 gigawatts of power online by 2019.
Siemens said Saturday it will install around 11 gigawatts of
capacity over four years, increasing current capacity by nearly 50%
and creating tens of thousands of jobs.
Within three months Siemens said it could restore power to
around 300,000 people.
Neither company has signed a binding contract, but the
preliminary agreements should serve as a first step toward a
definitive deal.
Previously both companies had been bidding to secure one
overarching contract, valued by media reports at around $15
billion.
The two rivals have been battling to secure contracts for their
struggling fossil-fuel generation businesses, which have been
forced to cut thousands of jobs in recent years as the global
transition to renewables has weighed on demand for large
turbines.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
October 22, 2018 02:32 ET (06:32 GMT)
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